Airline CEO Says No to First-Class Cabins on Next-Generation Long-Haul Jets
Qatar Airways will not install premium sleeping accommodations on its next-generation long-haul jets, according to CEO Akbar Al Baker. He argued that investing in new top-tier seats would not justify the return as the airline’s business-class offering provides mainly the same benefits. While the move goes against the airline’s five-star image, Al Baker said that he sees no need for smaller, exclusive first-class cabins when business class already provides a luxurious experience. Qatar Airways is betting that the future of travel lies in flexible business-class offerings, which it calls Q-Suite.
Global Aviation Supply Chain Faces Major Challenges with Parts Shortages
The aviation supply chain continues to cause significant concerns for Qatar Airways, as parts shortages and long backlogs on production lines continue to affect aircraft deliveries. Al Baker stated ahead of the annual meeting of the International Air Transport Association that the airline has about 15 fewer planes than the 25 it expects to take delivery of this year, adding that there were problems with the Boeing 787, the Airbus 321neo, and the A350 jets. Qatar Airways said it does not expect its own delivery delays to be resolved before the end of next year. The CEO has warned that the shortage of aircraft is the biggest challenge facing the industry, adding that growth ambitions must be limited by a lack of capacity.
Qatar Airways Plans Australia Expansion and Eyes New Partner Virgin Australia
Qatar Airways is looking to expand flights to Australia and plans to back new partner Virgin Australia against arch-nemesis Qantas. Al Baker acknowledged that the airline would like to offer an additional daily service each to Sydney, Perth, Melbourne, and Brisbane. Currently, all cities are served daily except for Melbourne, which operates twice daily. While there have been no discussions about investment opportunities, Al Baker responded with a smile when asked about investing in Virgin Australia, adding that “it depends, we’ll see.” The airline is confident that the expansion will be well received, noting that it has continued to operate international flights to most countries during the pandemic, while many domestic carriers have grounded their flights entirely.
Additional Piece: The Future of Air Travel is in Business Class
Qatar Airways’ decision to eliminate smaller, top-tier first-class cabins in its next-generation long-haul jets represents another decisive shift in the airline industry. While traditionally reserved for executives and privileged passengers in search of a unique travel experience, first-class cabins are becoming an increasingly ineffective way to generate revenue for airlines. As Al Baker pointed out, passengers are mainly looking for luxuries and amenities that business class already provides. Qatar Airways’ bet on flexible business-class offerings that provide a top-tier experience could be a game-changer for other airlines operating in the sector. In the current climate of a changing aviation industry, investing in new, luxurious first-class cabins could be a significant risk.
Apart from this, the global aviation supply chain faces significant challenges. The ongoing shortage of essential aircraft parts and long backlogs are affecting aircraft deliveries for Qatar Airways, among others. This exacerbates the existing capacity problem, limiting the growth ambitions of airlines and hindering efforts to expand to new markets. As a result, airlines need to develop more efficient supply chain management strategies to ensure timely delivery of these critical components.
However, despite these industry-wide issues, Qatar Airways remains unwavering in its expansion plans. The airline is committed to its expansion plans in Australia, with the goal of providing the region with additional daily services. Al Baker expressed his optimism that the expansion would be well-received among passengers and regulators.
In conclusion, Qatar Airways’ decision to eliminate first-class cabins represents a shifting trend in the aviation industry, driven by changing consumer preferences, industry-wide supply-chain challenges, and the risks associated with investing in an increasingly ineffective business model. As the airline industry continues to adapt and respond to these challenges, delivering a top-tier experience for passengers while streamlining operations will be key to the success of airlines in the future.
Summary:
Qatar Airways will not invest in premium sleeping accommodations for its next-generation long-haul jets. Instead, the airline will focus on a flexible business-class offering that caters to the need for luxury amenities and comfort. Additionally, the global aviation supply chain continues to face significant issues related to parts shortages and massive production backlogs, affecting aircraft deliveries. Furthermore, Qatar Airways is planning to expand its operations in Australia to offer more daily services to cities, including Perth, Melbourne, Brisbane, and Sydney. Despite these challenges, Al Baker is optimistic about the future of air travel, and he hopes to deliver a top-tier experience for passengers while streamlining operations for the airline’s success.
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Qatar Airways, a regular top prize winner at the Skytrax World Airline Awards, will not have premium sleeping accommodations on its next-generation long-haul aircraft, according to Chief Executive Officer Akbar Al Baker. Al Baker said investing in the most luxurious seats doesn’t justify the return as Qatar’s business class offering largely offers the same benefits.
“Why would you invest in a subclass of an aircraft that already gives you all the amenities that first class gives you,” Al Baker said in an exclusive hour-long interview in Istanbul on Saturday. “I see no need.”
Leaving first class on long-haul flights is not without strategic risk. The move goes against both Qatar’s five-star image and an industry trend that has seen airlines from Deutsche Lufthansa AG to Qantas Airways Ltd and Air France double their high-end offerings. Lufthansa boss Carsten Spohr said more and more holidaymakers are looking for a special treat and the front of his plane has never been so crowded.
For Al Baker, however, the future lies in business class, which Qatar calls a “Q-Suite” product. For this reason there will be no more First Class in the future next generation Boeing Co. 777X aircraft. These jets will be the largest the airline operates once all ten jets are finally phased out airbus SE A380, which still have 8 first class seats.
Cabin classes have become more flexible over the years, with airlines wedged between business and budget rows in premium economy. First class has remained more of a gimmick, confining corporate customers to top executives or attracting ordinary passengers indulging in a once-in-a-lifetime travel experience.
supply chain
The aviation supply chain remains a major concern for Qatar Airways as parts shortages and huge backlogs on the production line affect aircraft deliveries.
Al Baker said ahead of the annual meeting of the International Air Transport Association, which brings together some 300 airlines, that his airline has about 15 fewer planes than the 25 it is expected to take delivery of this year – citing problems with the Boeing 787 , the Airbus 321neo and the A350 jets.
Boeing CEO Dave Calhoun has tried to dampen expectations of a quick fix to supply shortages by warning that the aerospace industry could face disruptions to all major aircraft supplies for half a decade.
“What is happening is a vicious circle and this is the biggest challenge for the industry,” said Al Baker. “Our growth ambitions must be limited by the lack of capacity.”
Qatar Airways said it does not expect its own delivery delays to be resolved before the end of next year.
Australia Extension
In terms of expansion, the Gulf airline is eyeing Australia, Al Baker said. Qatar Airways is bidding to expand flights and also plans to back new partner Virgin Australia against arch-rival Qantas. Al Baker responded with a smile when asked about investing in Virgin Australia. Though no discussions took place, he said: “It depends, we’ll see.”
The airline would like to offer an additional daily service each to Sydney, Perth, Melbourne and Brisbane. Currently, all cities are served daily, with the exception of Melbourne, which operates twice daily.
Qatar Airways is confident the expansion will be well received, Al Baker said, noting that he has continued to operate international flights to most countries during the pandemic – while many domestic carriers have grounded their flights entirely.
“I don’t think that’s a big challenge for the authorities,” Al Baker said.
https://fortune.com/2023/06/03/qatar-airways-ceo-says-first-class-pointless-on-next-gen-aircraft/
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